ACCOUNTING 4400
AUDITING – PROFESSIONAL RESPONSIBILITIES
Fall 2015, Section 002
COURSE SYLLABUS AND SCHEDULE
INSTRUCTOR:
OFFICE:
PHONE:
EMAIL:
Sonja Hightower, CPA, CMA, CGMA, CIA
BLB 338C
(940) 565-3206
Sonja.Hightower@unt.edu
CLASS TIME& LOCATION:
Monday, Wednesday; 2:00 - 3:20 p.m.; BLB 225
OFFICE HOURS:
Monday, Wednesday
Friday
or by appointment.
11:00 - 11:50 a.m.
1:00 - 1:50 p.m.
11:00 - 11:50 a.m.
TEXT
Messier, Glover, and Prawitt. 2014. Auditing & Assurance Services: A Systematic Approach. Ninth edition. A course
copy is available at Eagle Commons Library in Sycamore Hall.
PREREQUISITES
ACCT 3120 and ACCT 4100; BLAW 3430; must have a 2.5 GPA in all ACCT 3000 and ACCT 4000 courses taken at
UNT or their equivalent taken at other colleges and universities to take this course. ACCT 4400 may not be taken
more than twice whether at UNT.
COURSE DESCRIPTION
Introduction to auditing and the professional responsibilities of a career in any specialty of the accounting profession.
Topics include the legal and ethical responsibilities of accountants; professional auditing standards; the acquisition,
evaluation, and documentation of audit evidence; reports on the results of the engagement.
CORE CATEGORY
Capstone
CORE CURRICULUM
The capstone course is an important component of UNT’s Core Curriculum. This course is related to the category of
Social and Behavioral Sciences and will focus on the application of empirical and scientific methods that contribute
to the understanding of what makes us human. As a capstone experience, auditing a company’s financial statements
requires an understanding of both accounting principles and the human and social environment in which accounting
decisions are made. The ability to make such considerations in complex situations derives from the study of the human
community and the social and behavioral environment.
The accounting function impacts all areas of the audit client organization. This course addresses the potentially
conflicting ways of thinking and decision-making applied by various constituencies of the client, including client
employees, the audit firm, regulators, and client shareholders, and considers how financial statements and the
accompanying audit report can impact these various constituencies. As an integral part of the core curriculum,
engaging in this course will allow the student to develop and demonstrate the core objectives of Critical Thinking,
Communication Skills, Social Responsibility and Personal Responsibility.
 Critical Thinking Skills – including creative thinking, innovation, inquiry, and analysis, evaluation and synthesis of
information. Case studies are used in this course to address complex issues that can arise during different phases of
the audit process. Students are challenged to be innovative (e.g., use critical thinking skills) when encountering
different conditions in the case studies.
 Communication Skills – including effective development, interpretation and expression of ideas through written,
oral and visual communication. Course material and case studies used in this course contain realistic circumstances
that can impact audit procedures and outcomes that require students to analyze information and communicate
appropriate solutions.
 Empirical and Quantitative Skills – including the manipulation and analysis of numerical data or observable facts
resulting in informed conclusions. The case studies used in this course require students to develop skills, related to
collecting and manipulating data that will enable them to prepare recommendations and form conclusions.
 Social Responsibility – including intercultural competence, knowledge of civic responsibility, and the ability to
engage effectively in regional, national, and global communities. Auditors have shared responsibility to the public as
well as to the client. In the preparation of an audit opinion, the auditor makes a statement regarding a client’s
financial condition. Users of financial statements (including investors, creditors, government, etc.) rely heavily on
the audit opinion, illustrating the social responsibility of the auditor. Class material and case studies used in this
course critically examine the auditor’s relationship between professional responsibility and social responsibility to
society.
LEARNING OBJECTIVES
When you complete this course, you should:
 Understand the professional responsibilities of CPAs in general
 Understand the audit process and audit reports
 Understand audit risk assessments, planning, and procedures
 Be able to apply the audit risk model
 Be able to research auditing standards
 Be able to identify fraud red flags
METHODS OF INSTRUCTION
Lecture, discussion, and application through cases.
CLASS WEBSITE
A class website will be maintained throughout the semester on Blackboard Learn (go to http://www.unt.edu/ and click
the link at the top for “Blackboard”). Class materials such as assignments, notes, etc. are available in Learn. I post
grades on Learn, but note grades available in Learn are unofficial.
COURSE TOPICS
Unit 1: Audit Fundamentals (chapters 1, 2, 19, 20)
 The Audit Process
 The Auditing Environment and Standards
 Ethics and Professional Conduct
 Legal Liability
Unit 2: Conducting an Integrated Audit (chapters 3, 4, 5, 6, 7)
 Planning, Materiality, and Risk Assessment
 Evidence and Documentation
 Auditing Internal Controls
Unit 3: Audit Testing, Audit Reports, and Fraud Risk Management (chapters 8, 9, 17, 18, 4)
 Audit Sampling
 Completing the Audit and Audit Reports
 Fraud Risk Management
POINT DISTRIBUTION AND GRADING SCALE
Assessment
Exam 1
Exam 2
Exam 3 (Final Exam)
Team Cases
Individual Core Objective Assessment
Individual Assignments
Professionalism
TOTAL
Points
100
100
100
150
40
40
20
550
Course Grade
A
B
C
D
F
Points Required
≥ 90% of total points
80-89% of total points
70-79% of total points
60-69% of total points
< 60% of total points
I use mathematical rounding to determine grades. For example, if your course grade is 447/500 (89.4%), your grade
will be a B. Your grade is completely based on your performance in this course. Whatever grade you need to
graduate, etc. is the result of your performance in prior classes and is irrelevant to the grading process in this course.
When you take a class, you are responsible for all class requirements and your course standing.
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EXAMS
There will be three exams, including the final exam. All course material is fair game for exam content. Exam 1 covers
Unit 1. Exam 2 covers Unit 2. Exam 3 (Final Exam) covers Unit 3 and any previous chapter(s) for which the class as a
whole did not perform well on Exams 1-2. Calculators are not allowed for Exams 1 and 2. I will provide calculators
for the Final Exam.
You may take a makeup exam under extraordinary circumstances, which I must approve prior to the exam you
miss. To be eligible for a makeup exam, you must provide adequate documentation such as a doctor’s excuse. For
medical absences, I do not need to know the cause of the absence. Simply document you were under a doctor’s care on
the exam date, could not return to school until after the exam date, etc. If I approve a makeup exam, you have two
options: (1) take the makeup exam during the designated non-negotiable makeup time; or (2) use a comprehensive
final to make up the points. An unexcused absence on exam day or the makeup day will result in a zero grade that
cannot be made up in any way.
EXAM RETENTION
Exam are retained for one year following the completion of the semester; thereafter they will be destroyed.
CASE SETS AND TEAMS
There will be six cases turned in throughout the semester. You will complete all cases in an “audit team” of three
students. You may select your teammates, and must submit a list of names on your team (one list per team). If
you do not join a team, I will assign you to a team. If your initial team selection has less than three students, I will
assign additional classmate(s) to your team. I reserve the right to adjust team membership as needed. A brief
description of the case sets follows:
1. Ethics and Professionalism in Auditing
 Case 1-1: Accounting Scandal
 Case 1-2: Audit Dilemma
 Case 1-3: Independence
2. Risk Assessment and Planning
 Case 2-1: Risk Assessment
 Case 2-2: Planning Phase Analytical Procedures
 Case 2-3: Substantive Tests and Documentation
3. Finalizing the Audit
 Case 3-1: Misstatements
 Case 3-2: Audit Negotiations
 Case 3-3: Opinions and Finishing the Audit
SUBMITTING TEAM ASSIGNMENTS
You must submit each case set in two formats:
1. Hard-copy (paper): The Case Set FAQs file on Learn (see the Team Case Sets folder) provides instructions and
other relevant information on how to prepare case sets.
2. Turnitin: Turnitin is an online tool available to faculty at UNT to help detect academic misconduct. Students are
required to submit written assignments for this class to Turnitin, a web-based plagiarism detection service. Before
submitting your paper to Turnitin, please remove your title page and other personal information. Any paper that
is not submitted to Turnitin prior to submission to the instructor will not be accepted by the instructor and will not
be graded. You must submit your cases to Turnitin using Blackboard Learn. To do this, log on to Learn, enter our
class page, and click the link for Course Content on the left. Once you are on the Course Content page, click to
View/Complete the appropriate assignment, and begin the process of uploading your assignment. Only one team
member should submit each case.
INDIVIDUAL CORE OBJECTIVE ASSESSMENT
This individual case involves planning the audit of a hypothetical client, and is submitted both as a hard-copy and
online in the same manner as the team cases. This assignment requires you to demonstrate the core objectives of
critical thinking, communication skills, empirical and quantitative skills, and social responsibility.
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INDIVIDUAL ASSIGNMENTS
Alchemy is submitted in hard-copy (paper) format only. The other three individual assignments will be submitted
online, using links I will provide.
1. If You Need Love, Get a Puppy (Braun and Stallworth 2009): A case about auditor independence and
professional skepticism (5 points).
2. PwC’s Alchemy Case Deliverables: Alchemy is a simulated internal controls audit. You are responsible for
submitting your work on the Additional Deliverables Packet in class (10 points).
3. Deloitte’s Danle Case: Auditing the client’s reporting of a contingent liability (5 points).
4. SEC Litigation Case (5 points).
5. Article Review (5 points).
6. Student Organization: Attend and write up a one-paragraph-long summary of a student organization meeting (Beta
Alpha Psi, NABA, ALPFA, ISACA/IIA/ACFE, or IMA) meeting. All write ups, are due one week after the event
(10 points).
LATE ASSIGNMENTS
Late assignments will receive a zero that cannot be made up in any way, unless you provide adequate documentation
such as a doctor’s excuse.
Deadlines for the Team Case Sets, Individual Core Objective Assessment, and Individual Assignments are:
 Turnitin Version (electronic version): No later than thirty (30) minutes before class on the due date.
 Hard-Copy (paper) Version: Beginning of class on the due date.
PROFESSIONALISM
Your professionalism grade is based on the following components:
 Participation: Material contribution to class discussion throughout the semester in class. Prepare for each class and
be ready to ask and answer questions. Coming to class and taking notes does not constitute participation. The use of
cell phones and other electronic devices during class are disruptive to me and your class mates and are subject to
point deductions. (10 points).
 Punctuality. I expect you to attend class and arrive on time for class. This means that you are seated when class
begins and you remain in class, without coming and going. Similarly, if you make an appointment outside of office
hours, you should either arrive on time or notify me in advance that you cannot attend on time (10 points).
COMMUNICATING WITH THE INSTRUCTOR
I want to be responsive to you when you reach out to me for my assistance. If you will adopt the following suggestions,
I will have a better chance of helping you in an effective and timely manner. The best way to contact me is via email.
a. If you email me, do not assume that I received your email unless I confirm receipt. Please type “ACCT 4400” in the
email subject line.
b. When leaving me a phone message, please speak clearly and slowly and make certain to leave me a number and time
when I can return the phone call.
c. When you see me in my office, it will be helpful for you to remind me of your name and the course you are in.
ACADEMIC DISHONESTY
Academic dishonesty will not be tolerated. Academic dishonesty includes cheating, plagiarism, forgery, fabrication,
facilitating academic dishonesty, and sabotage. These actions are defined in the UNT academic integrity policy,
available at http://policy.unt.edu/sites/default/files/untpolicy/pdf/7-Student_Affairs-Academic_Integrity.pdf
You can find additional information on academic integrity at http://vpaa.unt.edu/academic-integrity.htm.
Possible penalties for academic dishonesty include a zero grade for the assessment on which the student(s) engaged in
academic dishonesty and course failure. The failure to return any part of an exam or scantron at any time you have
these materials is an act of academic dishonesty that will at minimum result in a grade of zero for that exam.
Academic dishonesty on team assignments may result in penalties for all team members. Any grade reduction based on
academic dishonesty cannot be made up.
ACCEPTABLE STUDENT BEHAVIOR
Student behavior that interferes with an instructor’s ability to conduct a class or other students’ opportunity to learn is
unacceptable and disruptive and will not be tolerated in any instructional forum at UNT. Students engaging in
unacceptable behavior will be directed to leave the classroom and the instructor may refer the student to the Dean of
Students to consider whether the student's conduct violated the Code of Student Conduct. The university's expectations
for student conduct apply to all instructional forums, including university and electronic classroom, labs, discussion
groups, field trips, etc. The Code of Student Conduct can be found at www.deanofstudents.unt.edu.
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WITHDRAWALS
University policy relative to withdrawals will be followed. You should consult with your academic advisor prior to
withdrawing from or dropping this course and prior to the following dates if you are considering to drop this course:
Friday, 10/2/2015: Last day to drop a course or withdraw from the semester with a grade of W.
Monday, 11/2/2015: Last day for a student to drop a course with the consent of the instructor. W or WF may be
assigned. I am not permitted to give you a W after November 2 even if I want to, so please be aware of the drop dates!
The Accounting Department strictly enforces university policy regarding W/WF grades. If you drop this course after
the withdraw date, you must have a passing average (at least 60%) to receive a W grade; otherwise, you will receive a
WF. It is your responsibility to be aware of and comply with all deadlines relating to withdrawals.
FINALS WEEK
In the past, UNT has rearranged the final exam schedule due to inclement weather. You should consider this possibility
when making end-of-semester travel arrangements.
DISABILITY ACCOMMODATIONS
The College of Business complies with the Americans with Disabilities Act in making reasonable accommodations for
qualified students with disabilities. If you wish to request such accommodations, please notify me as soon as possible
so we can make arrangements. To obtain disability accommodations, you must first go through the UNT Office of
Disability Accommodation (ODA).
The ODA will give you a letter confirming your status. To receive accommodations, you must present this letter to me
at least one week in advance of the first graded in-class assessment for which you wish to receive accommodations.
Teaching Evaluations: I am more interested in the feedback you provide as part of the teaching evaluation process
than whether evaluations are conducted online, using paper and pencil, or both. I truly am interested in the feedback
you provide and have made changes to this course based on student feedback.
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COURSE SCHEDULE
ACCT 4400, Fall 2015, Section 002
Day
M
Date
24-Aug
Ch. 19
Topics
Syllabus
Introduction to Assurance and Financial
Statement Auditing (Audit Process)
Introduction to Assurance and Financial
Statement Auditing (Audit Process)
Audit Environment and Standards
Audit Environment and Standards
Labor Day – No class
Ethics & Professional Conduct
Ch. 20
Ethics & Professional Conduct
Legal Liability
Ch. 1
W
26-Aug
M
W
M
W
31-Aug
2-Sept
7-Sept
9-Sept
M
W
14-Sept
16-Sept
M
21-Sept
W
M
W
M
W
M
W
23-Sept
28-Sept
30-Sept
5-Oct
7-Oct
12-Oct
14-Oct
M
W
19-Oct
21-Oct
M
26-Oct
W
M
28-Oct
2-Nov
W
M
4-Nov
9-Nov
W
M
W
M
11-Nov
16-Nov
18-Nov
23-Nov
W
25-Nov
Fraud Risk Management
M
30-Nov
Fraud Risk Management
W
M
2-Dec
7-Dec
Ch. 2
Ch. 3
Ch. 4
Ch. 5
Ch. 6
Ch. 7
Legal Liability
Review for Exam 1
Exam I
Planning, Tests, & Materiality
Planning, Tests, & Materiality
Risk Assessment
Risk Assessment
Evidence and Documentation
Evidence and Documentation
Internal Controls
Internal Controls
Internal Controls
Review for Exam 2
Exam II
Audit Sampling
Ch. 17
Ch. 18
Ch. 4
Audit Sampling
Completing the Audit
Completing the Audit
Audit Reports
Audit Reports
Fraud Risk Management
Review for Final Exam
Final Exam
* Bold items to be turned in to the instructor
***SUBJECT TO CHANGE***
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Class Preparation*
Ch. 1: 1-24, 1-30
Ch. 2, Team Lists
Ch. 2: 2-24 through 2-28
Ch. 19
If You Need Love, Get a Puppy
Q1(2), Q2(2)
Ch. 19: 19-28, 19-29, 19-31
Ch. 20
Team Case Set 1
Ch. 20: 20-26, 20-31
Review Sheet
Ch. 1, 2, 19, 20
Ch. 3
Ch. 3: 3-27, 3-29
Ch. 4
Ch. 4: 4-27, 4-31
Ch. 5
Ch. 5: 5-31, 5-32, 5-33, 5-34
Team Case Set 2
Ch. 6
Ch. 6: 6-25
Ch. 7: 7-38, 7-39, 7-40
PwC’s Alchemy Case
Review Sheet
Ch. 3, 4, 5, 6, 7
Ch. 8
Ch. 8: 8-23, 8-27, 8-28
Ch. 9: 9-22
Core Objective Assessment
Ch. 17
Deloitte’s Danle Case Q1
Ch. 17: 17-22, 17-24
Ch. 18
Ch. 18: 18-22, 18-23
Ch. 4 (Part 2)
Ch. 4: 4-29
Team Case Set 3; Peer Review
Deloitte’s Fraud & Illegal Acts Case
SEC Litigation Case
Article Review
Deloitte’s Fraud & Illegal Acts Case
SEC Litigation Cases
Review Sheet
1:30 p.m. – 3:30 p.m.